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Gold pushes higher to break a decent resistance zone

Rajan Dhall

Kitco News

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(Kitco News) - Gold started the European session slightly subdued but it seems the appetite for the yellow metal has increased. As yields have taken a tumble in recent sessions gold has found some of its shine and the price is currently 0.40% higher on the day.

Looking at the 4-hour chart below, the price has taken out the blue resistance area at $1784.5/oz. This level has been used significantly on two occasions on the chart. First of all the price was supported back in mid-May and then again on the 1st July. Now this level is broken there is a chance that it could be retested as a support if the price does move higher.

If the price does continue to move higher then the next VPOC could be a sticky zone but the psychological $1800/oz area is in the way first.

On the downside, the orange previous consolidation high might give the price some support at $1737/oz. Elsewhere below that, the main wave low on the chart of $1678.4/oz is next but does not look under threat in the near term.

By Rajan Dhall

For Kitco News

Contact rdhall@kitco.com
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